Microsoft released software that uses virtualization to allow people to run applications in Windows 7 as if they are running in XP, making it easier for applications written for older versions of the OS to run on Windows 7.

As the Windows.blog website reports "...Back in April, we introduced the Windows XP Mode beta and after a few months of incorporating your enthusiastic feedback, today we are announcing the availability of the Windows XP Mode Release Candidate. Windows XP Mode is specially designed for small and medium-sized businesses to help ease the migration process to Windows 7 by providing additional compatibility for their older productivity applications. The newly updated Windows XP Mode now works with the RC and RTM versions of the Windows 7 Professional, Ultimate and Enterprise SKUs.

New Features in Windows XP Mode RC

Based on feedback from the Windows XP Mode beta, we?ve made several improvements to the usability of Windows XP Mode for small and medium-sized business users:

- You can now attach USB devices to Windows XP Mode applications directly from the Windows 7 task-bar. This means your USB devices, such as printers and flash drives, are available to applications running in Windows XP Mode, without the need to go into full screen mode.
You can now access Windows XP Mode applications with a ?jump-list?. Right click on the Windows XP Mode applications from the Windows 7 task bar to select and open most recently used files.

- You now have the flexibility of customizing where Windows XP Mode differencing disk files are stored.

- You can now disable drive sharing between Windows XP Mode and Windows 7 if you do not need that feature.

- The initial setup now includes a new user tutorial about how to use Windows XP Mode.

You can download the Windows XP Mode RC version at
http://www.microsoft.com/windows/virtual-pc/download.aspx